M/s Jamnalal Sons Private Limited (“JSPL”), Mumbai — Combination C-2023/03/1010

COMPETITION COMMISSION OF INDIA 12th April 2023 Notice under Section 6(2) of the Competition Act, 2002 given by Jamnalal Sons Private Limited CORAM: Ms. Sangeeta Verma Acting Chairperson Mr. Bhagwant Singh Bishnoi Member Order under Section 31(1) of the Competition Act, 2002 1. On 20th March 2023, the Competition Commission of India (Commission) received a notice (Notice) under Section 6(2) of the Competition Act, 2002 (Act), given by Jamnalal Sons Private Limited (JSPL/Acquirer). The Notice was given pursuant to the execution of Share Purchase Agreement between JSPL, Mukand Limited (Mukand/Seller) and Mukand Sumi Special Steel Limited (MSSSL) on 9th March 2023.

2. It has been submitted that the Proposed Combination envisages the acquisition of 25,71,150 equity shares of MSSSL, constituting 5.51% of its paid-up equity share capital along with voting rights, by JSPL from its group company, viz., Mukand and its nominees. JSPL is an existing shareholder, presently holding 44.20% of the issued and paid-up equity share capital of MSSSL. Upon acquisition of the above-mentioned additional shares, JSPL will not acquire any additional or special rights in MSSSL.

3. It has been submitted that JSPL, a part of the Bajaj Group of Companies, is an unregistered Non Systematically Important Core Investment Company. The principal business activities of JSPL are investing in shares and securities of Bajaj Group of Companies, units of mutual funds and lending to Group Companies within Bajaj

Group. JSPL does not carry on any manufacturing or trading activities. Bajaj Sevashram Private Limited, being the ultimate controlling entity of JSPL, holds 100% of the equity share capital of JSPL. Both JSPL and Mukand are part of the Bajaj Group of Companies.

4. MSSSL is a joint venture between Bajaj Group (51%) and Sumitomo Corporation, Japan (49%). MSSSL is engaged in the business of manufacturing, marketing, selling and distribution of hot rolled bars and wire rods by rolling and finishing of blooms and billets. It is also engaged in the manufacturing of long steel products.

5. With regard to horizontal overlap, it has been submitted that JSPL or its group entities do not have any horizontal overlaps with MSSSL, other than through the Seller including its subsidiary Mukand Sumi Metal Processing Limited. Similar is the case for the vertical interface.

6. The Proposed Combination envisages increase into shareholding of an existing shareholder from 44.2% to less than 50% without acquisition of any additional or special rights. There are no overlaps between the Target and the Acquirer including its group entities other than the Seller. The Proposed Combination does not affect the competition landscape to raise any competition concern.

7. Considering the material on record, including the details provided in the Notice and the assessment of the Proposed Combination based on factors stated in Section 20(4) of the Act, the Commission is of the opinion that the Proposed Combination is not likely to have any appreciable adverse effect on competition in India in any of the relevant market(s), and therefore, the Commission hereby approves the Proposed Combination under Section 31(1) of the Act.

8. This order may be revoked if, at any time, the information provided by the notifying parties is found to be incorrect.

9. It is made clear that nothing contained in this order shall be deemed to be confidential as the same has been used for the purposes of the Act in terms of the provisions contained in Section 57 of the Act.

10. The Secretary is directed to communicate to the notifying parties accordingly.